Vision and value system of Akio Morita that drove him to build a highly respected MNC from scratch.

Morita, a brilliant marketer, transformed Sony into an international presence. In the process, he matured into an irresistibly charismatic advocate of Japan's business interests." - John Nathan in 1999. "Morita was instrumental in leading Sony in the areas of marketing, globalization, finance and human resources. Morita also spearheaded Sony's entry into the software business and he contributed to the overall management of the company." - www.sony.com

Introduction

In 1994, Akio Morita (Morita), the cofounder of Sony Corporation (Sony), resigned from the post of the Chairman, following a paralytic stroke. Morita had spent almost half a century with the company, during which he positioned Sony as the world's most successful consumer electronics company. Acknowledging his contributions, an analyst remarked, "He had personally played a leading role in transforming Japan's economy from postWorld War II shambles to a superior player in the global marketplace." In 2002, Sony was ranked 37 on the Fortune 500 global list, with revenues of $60.61 billion. Under Morita's leadership, Sony continuously innovated new products and technologies. The company also adopted innovative marketing strategies and introduced many new products like compact discs, digital audiotapes, mini discs, PlayStations, DVDs, MPS Memory sticks, etc. Sony became a product leader and was also considered one of the most creative and innovative companies in the world. Morita was credited with the creation of Sony's most popular innovation - 'Sony Walkman' - the portable tape recorder. He was also credited with many other innovative products. By blending the western style of management with the Japanese style, Morita was able to provide

considerable competitive advantage to Sony. Morita was an excellent marketer, who emphasized the need for brand building of Sony's products.

Morita was an excellent marketer, who emphasized the need for brand building of Sony's products. As a result of his efforts, the brand became a symbol of high-quality sophisticated products. Morita was largely responsible for the globalization of the company at a time when Japan followed the system of closed economy. One of the other key success factors of Sony, according to the analysts, was Morita's people skills and his trust in his employees. After his resignation as the Chairman in 1994, he was made the honorary chairman of the company. However, after a severe attack of pneumonia, Morita passed away in October 1999. Though Sony continued its tradition of offering innovative products even after Morita's death, by the early 21st century, Sony was facing several problems due to the slowdown in the global economy. In 2002, Matsushita, Toshiba and Samsung had emerged strong contenders for the leadership position. However, analysts believed that despite the competition and other problems, Sony was still the best company in the consumer electronics industry, mainly because of Morita's efforts to make the Sony brand synonymous with innovation and high quality products.
Background Note

Morita was born on January 26, 1921, in a wealthy family, which was involved in the sake brewing business for fourteen generations. He had been groomed to be the successor of family business from the time he was in the third standard. At the age of ten, Morita's father made him attend all board meetings. He was taught to monitor the brewing process and evaluate the quality of sake brewed at their factories. He was also taught to deal with various people working for them. However, by the time Morita reached tenth standard, he realized that he was more interested in mathematics and physics.

He pursued his interests and eventually, graduated in Physics from the Osaka Imperial University. Immediately after his graduation, in 1944, Morita joined the Japanese Navy as a Lieutenant. At the Navy's Wartime Research Committee, Morita met Masaru Ibuka (Ibuka), an electronics engineer and they became good friends. After the end of World War II, Morita accepted a faculty position at the Tokyo Institute of Technology (TIT) in Tokyo, where he once again met Ibuka.